Nordmeier, Daniela and Schmerer, Hans-Joerg and Weber, Enzo (2016) Trade and labor market dynamics: What do we learn from the data? ECONOMICS LETTERS, 145. pp. 206-209. ISSN 0165-1765, 1873-7374
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Recent studies in international trade highlight potential labor market effects of trade liberalization through firm selection. Our empirical study contributes to this recent strand of literature by studying the short- and long-run effects of trade on unemployment in Germany. We employ a structural VAR approach in order to disentangle the total effect of trade on unemployment into job-findings and separations. Our results indicate that the unemployment effect mainly works through a drop in the job-separation rate, which can be explained by job-to-job transitions from contracting towards expanding firms. Thus, our results reinforce the importance of endogenous separations and on-the-job search in models of trade, heterogeneous firms and labor market frictions. (C) 2016 Elsevier B.V. All rights reserved.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | ; Exports; Worker flows; Transition rates; Cointegrated SVAR model |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Empirische Wirtschaftsforschung, insbesondere Makroökonomie und Arbeitsmarkt (Prof. Dr. Enzo Weber) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 08 Apr 2019 07:04 |
| Last Modified: | 08 Apr 2019 07:04 |
| URI: | https://pred.uni-regensburg.de/id/eprint/3570 |
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